RBC upgrades Vulcan to Outperform on compound earnings growth

RBC Capital analyst Mike Dahl upgraded Vulcan Materials to Outperform from Sector Perform with a price target of $191, up from $170. Ramping infrastructure tailwinds and "lagged" non-residential strength should largely offset "sharp headwinds" from new residential construction in 2023, Dahl tells investors in a research note. The analyst says Vulcan’s strong pricing tailwinds will "finally drive healthier margin improvement as costs ease." He sees the company and the aggregates as "clear price/cost winners" within his coverage. Vulcan is in a "unique position" to compound earnings growth over the next two years despite housing headwinds, writes Dahl.